Webcor-Obayashi Joint Venture v. Zurich American Insurance Company

BACKGROUND

19 In March 2009, Webcor-Obayashi Joint Venture (“Webcor”) and the Transbay Joint Power 20 Authority (“TJPA”) entered into a contract for Webcor to be the general contractor responsible for 21 constructing the Salesforce Transit Center (the “Transit Center”) in San Francisco, California. The 22 Transit Center is a multi-level transit facility with retail shops, and it spans four city blocks, crossing 23 over Fremont and First Streets. Two stories are underground and four stories are above ground, 24 topped with a 5.4 acre rooftop park. Under the contract, Webcor was prohibited from doing any of 25 the actual construction, so it relied on several subcontractors, one of whom was responsible for the 26 fabrication of the building’s steel girders. 27 Webcor also entered into a contract with Zurich American Insurance Company (“Zurich”) for Builder’s Risk Insurance. The policy was in effect from March 28, 2011, to July 16, 2018. Webcor paid Zurich more than $12 million in premiums for a total protection amount of over $1.5 billion. The insuring provision of the policy states: “This policy, subject to the terms, exclusions, limitations and conditions…